Method and system for reserving future purchases of goods and services

ABSTRACT

A method and system for reserving future purchases of goods or services or events including plural electronic options with associated option fees for the goods or services or events. The plural electronic options include electronic option terms established by one or more suppliers who can supply the goods or services or events. The purchase of the electronic option is accepted according to electronic option terms established by the desired supplier. The option terms may vary greatly among the individual suppliers and no two suppliers may use the same option terms. The electronic options are displayed, viewed, purchased, and exercised from a client network device.

CROSS REFERENCES TO RELATED APPLICATIONS

This U.S. application is a Continuation of U.S. patent application Ser.No. 13/549,751, filed Jul. 16, 2012, which is a Continuation of U.S.application Ser. No. 13/251,826, filed on Oct. 3, 2011, that issued asU.S. Pat. No. 8,229,841 on Jul. 24, 2012, which is a Continuation ofU.S. application Ser. No. 12/970,165, filed on Dec. 16, 2010, thatissued as U.S. Pat. No. 8,032,447 on Oct. 4, 2011, which is aContinuation of U.S. patent Ser. No. 11/805,564, filed May 23, 2007,that issued as U.S. Pat. No. 7,865,424, on Jan. 4, 2011, which is aDivisional of U.S. application Ser. No. 09/566,671 filed on May 8, 2000,that issued as U.S. Pat. No. 7,313,539, on Dec. 25, 2007, the contentsof all which are incorporated by reference.

FIELD OF THE INVENTION

This invention relates to providing goods or services over a computernetwork. More specifically, this invention relates to providingelectronic options for goods or services via a computer network such asthe Internet or an intranet.

BACKGROUND OF THE INVENTION

The Internet has provided consumers a medium for shopping that isavailable twenty-four hours a day, seven days a week and 365 days ayear. The Internet has also provided suppliers that ability to offergoods or services and receive orders from consumer in an automated, andpotentially more cost-effective way.

There are many occasions for which a consumer may be interested in goodsor services but not be able or willing to purchase the goods or servicesat the present time. For example, a supplier may be offering a newelectronic component that may interest a consumer. The consumer may notpresently have the money to purchase the new electronic component.However, the consumer may want to lock in a current favorable price orguaranty the availability of the electronic component. The consumer mayalso want to “lock-in” a desired price while he/she does comparisonshopping on the electronic component at other locations.

As is known in the art, an option can be used to reserve a proprietaryinterest in an item at a future time. An option is typically a contractconveying a right to buy or sell a designated item at a specified timeduring a stipulated period. There are many examples of using options forfinancial instruments, such as stocks, bonds and other items known inthe art. See for example, U.S. Pat. No. 6,049,783, entitled “InteractiveInternet Analysis Method,” U.S. Pat. No. 6,024,641, entitled “Methodapparatus and system for lottery gaming,” and U.S. Pat. No. 5,991,744,entitled “Method and apparatus that process financial data relating towealth accumulations plans” U.S. Pat. No. 5,844,286, entitled “Apparatusand process for executing an expirationless option transaction,” U.S.Pat. No. 5,671,363, entitled “Private stock option account control andexercise system,” and others.

There are also examples of making conditional purchases known in theart. See for example, U.S. Pat. No. 6,041,308, entitled “System andmethod for motivating submission of conditional purchase offers,” U.S.Pat. No. 6,012,045, entitled “Computer-based electronic bid auction andsale system,” U.S. Pat. No. 5,897,620, entitled “Method and apparatusfor the sale of airline-specified flight tickets,” U.S. Pat. No.5,297,031, entitled “Method and apparatus for order management by marketbrokers” and others.

However, there are several problems associated with using options knownin the art to reserve a proprietary interest in a product at a futuretime. One problem is that unlike securities products (e.g., stocks,bonds, etc.) which are limited in number, there are far too many typesof diverse products available on the Internet to logistically andeffectively create one set of mutually agreeable contract terms foroptions to be used for such products.

Another problem is that options typically are created to protect ahigh-value, high-volume, high-risk products against price volatility.Price volatility is generally not large enough for most consumer orbusiness products to use options. Without large price volatility, thereis typically no incentive for a supplier to supply options for lowvolume, low margin, or low risk products.

Another problem is that options typically have uniform terms set by acentral governing agency (e.g., the Security Exchange Commission). Suchuniform terms are typically not suitable for an individual supplier of aproduct. A supplier may desire to provide his/her own option terms forspecific products to help manage his/her inventory, risk or revenue.

Another problem is that the Internet and other computer networks havegeneric, everyday, consumer or business products available to consumersworldwide. However, options have typically not been available on suchproducts.

Another problem is that suppliers may want to sell options on productsthat are not fully developed or don't even exist yet. Presently, optionsystems do not allow an option to be purchased for a product that doesnot exist or may never exist.

Another problem is that the Internet and other computer networks haveprovided the ability for suppliers to use new e-commerce business modelsto supply products. Options typically have not been used to support newe-commerce business models.

Another problem is that options typically have been used only for goodsand not for services. A consumer may desire to purchase an option for atype of service (e.g., accounting services, a musical performer'sservices, an actor's services, etc.).

Thus, it is desirable to provide a method for using options for goods orservices that is available on a computer network, such as the Internet.The method should make it easy and convenient for a purchaser to buy anoption on goods or services to reserve a right to purchase desired goodsor services with option terms set by a supplier of the goods orservices.

SUMMARY OF THE INVENTION

In accordance with preferred embodiments of the present invention, someof the problems associated with using options for goods or services areovercome. A method and system for reserving future purchases of goods orservices is presented.

A method for providing electronic options. A server network deviceprovides to a client network device via a computer network, a list ofavailable goods or services including plural electronic options withassociated option fees for the goods or services. The plural electronicoptions include electronic option terms established by one or moresuppliers who can supply the goods or services. An option fee isassociated with a reservation price to purchase desired goods orservices at a desired future time. Electronic option terms for aselected good or service from a desired supplier who can supply theselected good or service are provided. A purchase of an electronicoption for an option fee for a desired good or service from a desiredsupplier is accepted on the server network device. The purchase of theelectronic option is accepted according to electronic option termsestablished by the desired supplier. A confirmation for purchase of theelectronic option for the option fee is provided to the client networkdevice. Information about the electronic option is stored in a databaseassociated with the server network device. The electronic options aredisplayed, viewed, purchased, and exercised from a client networkdevice.

A type of electronic option provided is governed by the option termsestablished by an individual supplier. The option terms may vary greatlyamong the individual suppliers and no two suppliers may want to use thesame option terms. Use of variable option terms may provide significantflexibility for use of the electronic options by suppliers. Use of theelectronic options is governed by individual suppliers and not by agovernment authority or security laws.

The method and system may be used for business-to-business (“b2b”),business-to-consumer (“b2c”), consumer-to-business (“c2b”),consumer-to-consumer, (“c2c”) or other types of electronic transactions.The electronic options allows a purchaser to risk a small amount ofmoney to use an electronic option to reserve a price to purchase desiredgoods or services at a desired future time.

The foregoing and other features and advantages of a preferredembodiment of the present invention will be more readily apparent fromthe following detailed description. The detail description proceeds withreferences to accompanying drawings.

BRIEF DESCRIPTION OF THE DRAWINGS

Preferred embodiments of the present invention are described withreference to the following drawings, wherein:

FIG. 1 is a block diagram illustrating an exemplary electronic optionsystem;

FIG. 2 is a flow diagram illustrating a method for providing electronicoptions for goods and services from a server network device;

FIG. 3 is a flow diagram illustrating a method for requesting electronicoptions for goods and services from a client network device;

FIGS. 4A, 4B and 4C are block diagrams visually illustrating the methodsof FIG. 2 and FIG. 3;

FIG. 5 is a block diagram illustrating exemplary electronic optionconfirmation information for the electronic option of FIG. 4C;

FIG. 6 is a flow diagram illustrating a method for using electronicoptions by desired supplier; and

FIG. 7 is a flow diagram illustrating a method for using electronicoptions by other suppliers.

DETAILED DESCRIPTION OF PREFERRED EMBODIMENTS Exemplary ElectronicOption System

FIG. 1 is a block diagram illustrating an exemplary electronic optionsystem 10 for one exemplary embodiment of the present invention. Theelectronic option system 10 includes one or more client network devices12, 14, 16 (only three of which are illustrated). The client networkdevices 12, 14, 16 include, but are limited to, personal computers,wireless telephones, personal information devices, personal digitalassistants, hand-held devices, network appliances, and other types ofelectronic devices. However, the present invention is not limited tothese devices and more, fewer or equivalent types of client electronicdevices can also be used. The client network devices 12, 14, 16 are incommunications with a computer network 18 (e.g., the Internet, intranet,etc.). The communication includes, but is not limited to, communicationsover a wire connected to the client network devices, wirelesscommunications, and other types of communications. Plural server networkdevices 20, 22, 24 associated with one or more associated databasesinclude electronic option and/or pricing information for goods andservices that may be supplied by plural suppliers.

An operating environment for components of the electronic option system10 for preferred embodiments of the present invention include aprocessing system with at least one high speed Central Processing Unit(“CPU”) and a memory. In accordance with the practices of personsskilled in the art of computer programming, the present invention isdescribed below with reference to acts and symbolic representations ofoperations or instructions that are performed by the processing system,unless indicated otherwise. Such acts and operations or instructions arereferred to as being “computer-executed” or “CPU executed.”

It will be appreciated that acts and symbolically represented operationsor instructions include the manipulation of electrical signals orbiological signals by the CPU. An electrical system or biological systemrepresents data bits which cause a resulting transformation or reductionof the electrical signals or biological signals, and the maintenance ofdata bits at memory locations in a memory system to thereby reconfigureor otherwise alter the CPU's operation, as well as other processing ofsignals. The memory locations where data bits are maintained arephysical locations that have particular electrical, magnetic, optical,or organic properties corresponding to the data bits.

The data bits may also be maintained on a computer readable mediumincluding magnetic disks, optical disks, organic memory, and any othervolatile (e.g., Random Access Memory (“RAM”)) or non-volatile (e.g.,Read-Only Memory (“ROM”)) mass storage system readable by the CPU. Thecomputer readable medium includes cooperating or interconnected computerreadable medium, which exist exclusively on the processing system or bedistributed among multiple interconnected processing systems that may belocal or remote to the processing system.

Providing Electronic Options for Goods and Services from a ServerNetwork Device

FIG. 2 is a flow diagram illustrating a Method 26 for providingelectronic options for goods and services. At Step 28, a server networkdevice provides to a client network device via a computer network, alist of available goods or services including plural electronic optionswith associated option fees for the goods or services. The pluralelectronic options include electronic option terms established by one ormore suppliers who can supply the goods or services. An option fee isassociated with a reservation price to purchase desired goods orservices at a desired future. At Step 30, electronic option terms for aselected good or service for a desired supplier who can supply theselected good or service are provided. At Step 32, a purchase of anelectronic option for an option fee for a desired good or service for adesired supplier is accepted on the server network device. The purchaseof the electronic option is accepted according to electronic optionterms established by the desired supplier. A confirmation for purchaseof the electronic option for the option fee is provided to the clientnetwork device. Information about the electronic option is stored in adatabase associated with the server network device.

A type of electronic option used with Method 26 is governed by theoption terms established by an individual supplier. The option terms mayvary greatly among the individual suppliers and no two suppliers maywant to use the same option terms. Use of variable option terms providessignificant flexibility for use of the electronic options with Method26.

Method 26 and a computer network 18 such as the Internet allows asupplier to supply options for virtually any good or service based onhis/her own terms. The electronic options may be used for low price, lowvolume, low margin, or low risk products. The goods may includevirtually any consumer or business products (e.g., toys, electronicdevices, etc.). The services may include virtually any services (e.g.,accounting services, a musical performer's services, an actor'sservices, etc.).

In one embodiment of the present invention, the list of goods andservices with plural electronic options provided at Step 28 includes a“counter” that includes a number of available options for a desiredgoods or services. In such an embodiment, the counter may count down tozero in real-time as electronic options are purchased.

In one embodiment of the present invention, a supplier may desire todesire to provide an electronic option only on desired products, but notall products. The electronic options can be used to better manageinventory, risk or revenues.

In one embodiment of the present invention, a supplier is a “vendor.” Insuch an embodiment, a vendor allows electronic options to be purchasedfor goods or services the vendor creates, manufactures, etc. In anotherembodiment of the present invention, a supplier is a “broker.” In suchan embodiment, a broker obtains desired goods or services from one ormore other vendors, but does not create the desired goods or services.In another embodiment of the present invention, a supplier is both avendor and a broker depending on the goods or services offered. In suchan embodiment, the supplier will act as a vendor for a first portion ofgoods or services provided and also act as a broker for a second portionof goods or services provided. For example, a supplier may act as avendor to sell it's own goods, but may also act as a broker for othergoods from other suppliers.

In one embodiment of the present invention, the list of pluralelectronic options with associated option fees is provided from onecentral location on a computer network. In another embodiment of thepresent invention, the list of plural electronic options with associatedoption fees is provided from multiple distributed locations on acomputer network.

When an electronic option is purchased, a purchaser is sent periodicreminders about the electronic options until the electronic optionexpires at the desired future time. The periodic reminders can be sentelectronically, such as with electronic mail, (“e-mail”) or sent inother electronic or non-electronic formats (e.g., a post card in regularmail).

A list of purchase prices for the goods or services is typicallyprovided along with the list of electronic options. This allows apurchaser to either directly purchase desired goods or services orpotentially defer a purchase to a desired time in the future bypurchasing an electronic option on desired goods or services.

In another embodiment of the present invention, electronic options maybe made available other suppliers who supply similar goods or services.A fee will typically be charged to a supplier who may request a list ofpurchasers of electronic options. In such an embodiment, the electronicoptions may be made available only if the purchaser gives his/herpermission.

In another embodiment of the present invention, the electronic optionsmay be made available to other suppliers based on the electronic optionterms set by a supplier. Making the electronic options available toother suppliers allows the other suppliers to send additional offers forsimilar goods or services directly to a purchaser of an electronicoption. The additional offers may include similar goods or services orgoods or services with additional or enhanced features or functionality.The offers may also include sale items that may be purchased instead ofthe desired goods or services reserved with the electronic option.

In one embodiment of the present invention, a purchaser is allowed toexercise the electronic option at any time before the desired futuretime to purchase the desired goods or services at the reservation price.In another embodiment of the present invention, the purchaser is onlyallowed to exercise the option when the desired future time arrives.

In one embodiment of the present invention, a supplier may sellelectronic options on goods or services that are not fully developed ordon't even exist yet. Purchasing interest in such electronic optionscould be used to determine the economic feasibility of continuing todevelop such a product or used to determine final pricing and featuresfor a desired good or service. In another embodiment of the presentinvention, a supplier may use electronic options to support newe-business models.

In another embodiment of the present invention, an electronic option canpurchased for an event that may never happen. For example, an optionservice may provide electronic options for World Series tickets for allmajor league baseball teams before the season starts. Only two teamswill play in the World Series. However, a purchaser is able to purchasean option to buy World Series tickets for any team, even those that teammay not play in the World Series.

In another embodiment of the present invention, the option termsestablished by a supplier may indicate purchasing an electronic optionwith a lower option fee will only guarantee a purchaser an X % (e.g.,50%) chance that the desired goods or services will be available at allat the desired future time. The option terms may also indicate thatpurchasing an electronic option with a higher option fee will guaranteea purchaser a Y % (e.g., 99%) chance that the desired goods or serviceswill be available at the desired future time. In such an embodiment,paying an option fee does not guarantee that desired goods or serviceswill be available for a purchaser.

In another embodiment of the present invention, the electronic optionmay include a volatility factor and a range of reservation prices. Thevolatility factor may cause an actual price paid for desired goods orservices at a desired future time to be greater than the reservationprice reserved by a purchaser. For example, an electronic option with avolatility factor may be made available for goods or services includinga new toy, a new electronic product, tickets for sporting events,concerts, etc. The electronic option may include a volatility factorsince the demand for the goods or services is uncertain, but demand mayeventually exceed supply based on a scenario of conditions.

If an electronic option with a volatility factor is purchased for goodsor services at a reservation price, and the demand for the goods orservices is weak, the purchaser will be able purchase the goods orservices at the reservation price at the future time if the purchaser sodesires. If demand for the goods or services is strong, and thepurchaser may be required to purchase the goods or services at a higherprice than the reservation price if the purchaser still desires toactually purchase the goods or services.

In one embodiment of the present invention, an electronic option fee maybe determined, in part, by electronic option terms input by a purchaser.A individual supplier may also provide different types of electronicoptions to different individual users based on their current or previousinteractions.

In another embodiment of the present invention, the electronic option isa “personalized electronic coupon” dynamically created by a servernetwork device and sent to a client network device based on current orprevious input from a user. In such an embodiment, a purchaser of theoption may also input one or more desired options terms to createhis/her own personalized electronic coupon. The personalized electroniccoupon is governed by the electronic options terms determined by adesired supplier and/or by the purchaser.

A electronic option is sold for an option fee that is typically set as asmall percentage of the reserved purchase price (e.g., 1% to 25%). Apurchaser is risking a small amount of money to potentially purchasedesired goods or services at a reservation price at a desired futuretime. The reservation price is typically lower than a regular pricecharged for the goods and services.

However, the electronic option does not obligate a purchaser to actuallypurchase the desired goods or services for the reservation price at thedesired future time. A purchaser may choose not to exercise theelectronic option. As a result, the purchaser only loses a small amountof money that was paid to buy the electronic option (i.e., the optionfee). The supplier may make a small amount of money from each electronicoption that was not exercised and is typically able to sell the optionedgoods or services to other purchasers.

In one specific embodiment of the present invention, the option fee maybe determined by one or more of the electronic option factorsillustrated in Table 1. However, the present invention is not limited toan electronic option using the electronic option factors illustrated inTable 1, and equivalent or other types of electronic options factors canalso be used.

TABLE 1 Electronic Option Factor Description S A factor relating to aselected strike price (i.e., a price at which an optioned good orservice may be purchased). D A factor relating to a selected time periodan option is valid for (i.e., a number of days) V A factor relating to astandard deviation in an average price volatility of a good or service.L A factor relating to a list price of the product. BE A factor relatingto a distributor's break even point of a good or service. LAP A factorrelating to a lowest available sales price for the good or service thatcan be obtained with comparison shopping. NR A factor relating to apossible non- availability of the good or service upon option exercise.DIS A factor relating to a discounting toward a break even point

In one embodiment of the present invention, determining an option feefor an electronic option is illustrated with Equations 1, 2 and 3 usingthe electronic option factors from Table 1. However, the presentinvention is not limited to calculation of an option fee as isillustrated in Equations 1, 2 and 3 and other or equivalent optionformulas may be used to calculate the option fee. In addition, Equations1, 2 and 3 may be combined into one equation, or further split intoadditional equations, and the present invention is not limited tocalculating an option fee for an electronic option using threeequations.

(LAP*(1+V)−S)=A  (1)

A−(DIS*(LAP*(1+V)−BE))=SUM  (2)

(SUM+(NR*S))*(D/365+1)=ELECTRONIC OPTION FEE  (3)

For example, suppose a user desired to purchase an electronic option fora 60 day time period on a Digital Video Disk (“DVD”) player with a listprice of $200 and a reservation price of $170. Table 2 illustratesexemplary values for electronic option factors from Table 1 used todetermine an exemplary electronic option fee charged at Step 32 by asupplier. Table 3 illustrates the use of the electronic option factorsfrom Table 2 in Equations 1, 2 and 3.

TABLE 2 Electronic Option Factor Description S $170 D 60 V 0.05 L $200BE $160 LAP $180 NR 0.01 DIS 0.5

TABLE 3 $180 * (1 + 0.05) − $170 = $19.00 (1) $19.00 − (0.5 * ($189 −$160)) = $4.50 (2) ($4.50 + (0.01*$170)) * (60/365 + 1) = $7.22 (3)

As is illustrated in Table 3, a purchaser would pay $7.22 option fee foran electronic option to buy a DVD player within 60 days. The electronicoption gives the purchaser a right to pay a total price of $177.22($170+$7.22) for the DVD player that sells for a list price of $200, ifthe electronic option is exercised. Otherwise, the purchaser risked only$7.22 for 60 days to potentially “reserve” a DVD player for purchase.This example assumes that the lowest possible price a purchaser couldfind the DVD player anywhere else by comparison shopping would be $180(i.e., the LAP price), if the DVD player was available from a supplierwhen the purchaser desired the DVD player. Thus, the purchaser canactually reserved the DVD player, guarantee the DVD player would beavailable for 60 days, and save $2.78 for the lowest available offeredprice for the DVD layer ($180-177.22) with wasting time shopping for alower price.

The option fee is set by a supplier to make the electronic optionsattractive to a purchaser, and help convince a purchaser that it is notnecessary to spend any of his or her own time to try and find a lowerprice for desired goods or services.

In one embodiment of the present invention, all of the option fee ispaid to an electronic option service that provided the electronic optioninformation. In another embodiment of the present invention, a firstportion of the option fee is paid to an electronic option service thatprovided the electronic information. A second portion of the option feeis paid to the desired supplier who can provide the desired good orservice. For example, for an option fee of $7.22, the option service maycollect $0.22 and the desired supplier may collect $7.00. The optionservice collects a small fee for each electronic option purchased forproviding the electronic option service. The desired supplier collects alarger fee for taking the risk to potentially supply the desired good orservice. In another embodiment of the present invention, all of theoption fee is paid to the desired supplier who can provide the desiredgood or service.

In another embodiment of the present invention, an option service may bepaid a small percentage of the option fee as well as a percentage of apurchase price for every good or service that is actually purchased byexercising an electronic option. For example, a option service may bepaid 5% of the option fee as well as 2% of the actual purchase price ofthe good or service. In another embodiment of the present invention, allof the option fee may be paid to a supplier, while the option servicemay be paid only a percentage of a purchase price for an exerciseelectronic option on a good or service.

These embodiments are illustrative only. Virtually any type of optionfee or purchase price sharing can be used with the present invention.

Requesting Electronic Options for Goods and Services from a ClientNetwork Device

FIG. 3 is a flow diagram illustrating a Method 34 for requestingelectronic options for goods and services from a client network device.At Step 36, a list of available goods or services including pluralelectronic options with associated option fees for the goods orservices, is received from a server network device on a client networkdevice via a computer network. The plural electronic options includeelectronic option terms established by one or more suppliers who cansupply the goods or services. An option fee is associated with areservation price to purchase desired goods or services at a desiredfuture time. At Step 38, an electronic option associated with a desiredgood or service provided by a desired supplier is selected. At Step 40,electronic option terms established by the desired supplier for thedesired good or service are received on the client network device. AtStep 42, the electronic option terms for the desired good or service areaccepted on the client network device. At Step 44, the electronic optionis purchased on the desired good or service provided by the desiredsupplier based on the accepted electronic option terms established bythe desired supplier for an option fee. A confirmation for purchasingthe electronic option is received from the server network device on theclient network device.

In one embodiment of the present invention, the electronic option termsestablished by the desired supplier for the desired good or servicereceived on the client network device include a request for a user toenter personal information (e.g., name, address, phone number, e-mailaddress, etc.) that is used to associate a user with a desiredelectronic option.

In one embodiment of the present invention, the confirmation includes anindication of the option fee paid for the electronic option, anexpiration date for the electronic option, the reservation price and thedesired supplier. In another embodiment of the present invention, theconfirmation includes the information listed in the previous sentence aswell as other information such as the LAP price, etc.

The interaction between Methods 26 and 34 are illustrated with onespecific exemplary embodiment of the present invention. However, thepresent invention is not limited to this specific exemplary embodimentand other embodiments can also be used with Methods 26 and 34. FIGS. 4A,4B and 4C are block diagrams 46, 54, 62 visually illustrating theinteractions between Methods 26 and 34.

In such a specific embodiment of the present invention, at Step 28 (FIG.2) the server network device 24 provides to a client network device 16via the Internet 18, a list of available goods and electronic optionswith associated option fees. At Step 36 (FIG. 3), the client networkdevice 16 receives the list of available goods and electronic optionswith associated option fees from the server network device 24 via theInternet 18. In this example, FIG. 4A illustrates a list 48 of DVDplayers currently being offered by Supplier XYZ. The list 48 includes anelectronic option with associated option fee for the “First Class” DVDplayer. The DVD player is currently being sold for $200. An electronicoption can be purchased for 60 days for an option fee of $7.22 to allowthe DVD player to be purchased at a reservation price of $170.

At Step 38 (FIG. 3) an electronic option associated with the DVD playerprovided by Supplier XYZ is selected from the client network device 16.In this example, the electronic option is selected by selecting the“OPTION IT” button 50 (FIG. 4A). However, the present invention is notlimited to selecting an electronic option with this method and othermethods can also be used. The DVD player can also be purchased directlyfor $200 by selecting the “BUY IT” button 52 (FIG. 4C).

At Step 30 (FIG. 2) electronic option terms 56 (FIG. 4B) for theselected First Class DVD player from the Supplier XZY are provided fromthe server network device 24 to the client network device 16. At Step 40(FIG. 3), the electronic option terms 56 (FIG. 4B) are received on theclient network device 16. At Step 42 (FIG. 3), the electronic optionterms 60 for the DVD player are accepted on the client network device16. In this example, the electronic option terms are accepted byselecting the “ACCEPT” button 58 (FIG. 4B). However, the presentinvention is not limited to selecting electronic option terms with thismethod and other methods can also be used. A user can also decline toaccept the electronic option terms by selecting the “DECLINE” button 60(FIG. 4B). If a user declines to accept the electronic option termsprovided by the Supplier XYZ, the electronic option can not bepurchased.

At Step 44 (FIG. 3), the electronic option is purchased on the DVDplayer based on the accepted electronic option terms 56 established bySupplier XYZ for an option fee of $7.22. The reservation price for theDVD player is $170. At Step 32 (FIG. 2) the electronic option purchasedfor the DVD played accepted on the server network device 24 according toelectronic option terms established by the Supplier XYZ. The electronicoption information is stored in a database associated with the servernetwork device 24.

A confirmation for purchase of the electronic option for the option feeis provided to the client network device 16 from the server networkdevice 24. A confirmation 64 (FIG. 4C) for purchasing the electronicoption is received from the server network device 24 on the clientnetwork device 16. In this example, the confirmation 64 (FIG. 4C)includes an indication of the supplier (Supplier XYZ), user (JaneSmith), option fee paid ($7.22), reservation price ($170), time period(60 days) and current LAP price ($180). However, the present inventionis not limited to a confirmation with this information, and more, feweror equivalent confirmation information items can also be used.

In one embodiment of the present invention, a user who purchases anelectronic option can access electronic option information from a clientnetwork device via the computer network 18. In such an embodiment, auser would be provided a method to securely obtain electronic optioninformation (e.g., a login and password, etc.). In one embodiment of thepresent invention, a central server network device is used to storeelectronic option information for all suppliers.

In another embodiment of the present invention, electronic optioninformation is stored on one or more server network devices forindividual suppliers who provide the desired goods or services for whichthe electronic option was purchased. In another embodiment of thepresent invention, the electronic option information can be obtainedfrom both a central server network device as well as from the one ormore server network devices for individual suppliers who provide thedesired goods or services for which the electronic option was purchased.

FIG. 5 is a block diagram 66 illustrating exemplary electronic optioninformation 64 for the electronic option of FIG. 4C. In this example,the electronic option information includes an “EXERCISE” button 70 thatallows a user to immediately exercise the electronic option and obtainthe DVD player for a reservation price of $170. Since the electronicoption information is provided electronically (i.e., via a computernetwork), when a user selects the EXERCISE button 70, the desired goodmay then be automatically shipped directly the purchaser without furtherinput from the purchaser.

In one embodiment of the present invention, Method 34 can be used bypurchase managers to proactively reserve goods or services that will beneeded at a future time for a known reservation price. Method 34 notonly provides a method to aid future planning for resources and/orbudgets, but also provides a method to allow non-executive staff toefficiently assist executive staff in a business organization. Forexample, if a manufacturer knows that it typically must purchase fourmachine presses per year because of normal wear and tear, a purchasemanager could purchase four electronic options on the presses in Januaryor each year. Thus, the purchase manager has effectively authorized thepurchase of four presses at the reservation price.

When a press breaks down and needs to be replaced, an electronic optionfor a press could be exercised at the reservation price. Since thepurchase manager has purchased the electronic options for apre-determined reservation price, a low-level assistant could actuallyexercise the electronic option and obtain the press without input fromthe purchase manager.

Use of Electronic Option Information by Desired Suppliers

FIG. 6 is a flow diagram illustrating a Method 72 for using electronicoptions by a desired supplier. At Step 74, a database accessible from acomputer network is read from a server network device. The databaseincludes plural entries with electronic option information. At Step 76,plural new electronic offers are created based on desired goods orservices associated with the electronic option information. At Step 78,one or more of the plural new electronic offers are sent to selectedclient network devices for selected purchasers of electronic options.

Method 72 allows a desired supplier who was willing to accept anelectronic option for a desired good or service to try and sell otheritems to a purchaser of an electronic option. For example, if apurchaser had purchased an electronic option on a DVD player from adesired supplier, the desired supplier may send the purchaser offers tobuy DVD disks for the DVD player. Method 72 may also allow a desiredsupplier to alert a purchaser of sale items. Method 72 may also allow adesired supplier to coax a purchaser to exercise an electronic option bysending offers to remind the purchaser to purchase the desired good orservice at the reservation price or a price below the reservation price.Method 72 may help a desired supplier better manage inventories of goodsor better manage services.

Use of Electronic Option Information by Other Suppliers

FIG. 7 is a flow diagram illustrating a Method 80 for using electronicoptions by other suppliers. At Step 82, a database accessible from acomputer network including a plurality of entries with electronic optioninformation is provided. At Step 84, access to the database is providedfor a fee to suppliers who desire to use the electronic optioninformation to offer similar or other goods or services to users whohave purchased electronic options.

Method 80 allows other suppliers to target purchasers of electronicoptions with information about similar goods or services or differenttypes of goods and services offered by a supplier. As was discussedabove the electronic options may be made available to other suppliersonly if the purchaser gives his/her permission. However, the electronicoptions may also be made available to other suppliers based on theoption terms set by a supplier, and agreed to by a purchaser.

The methods and system described herein may be used for to provideoptions for b2b, b2c, c2b, c2c or other types of transactions over theInternet. However, the present invention is not limited to thesetransactions and other types of transactions can also be used.

The methods and systems described herein may offer the followingadvantages for suppliers: (1) a supplier may make additional revenuefrom electronic option fees even if an electronic option is notexercised by a purchaser; (2) a supplier is in complete control of theelectronic option terms; (3) a supplier may be able convert browsersinto purchasers by allowing a browser to risk a small amount of moneyfor the ability to reserve a purchase of a desired good or service withan electronic option; and (4) a supplier can use demographic informationcollected from a user and associated with an electronic option tocross-sell additional goods or services.

The methods and system described herein may offer the followingadvantages for purchasers: (1) a purchaser can use an option to lock ina lower price for an item that may be in high demand; (2) a purchasercan use the reservation price from a computer network supplier tocomparison shop at “brick and mortar” suppliers; (3) a purchaser canreserve a purchase of a good or service for a gift for an occasion thatis months into the future and take actual delivery just before theoccasion; and (4) a purchaser can risk a small amount of money toreserve the right to purchase a good or service in the future, but notbe obligated to actually purchase the good or service.

It should be understood that the programs, processes, methods and systemdescribed herein are not related or limited to any particular type ofcomputer or network system (hardware or software), unless indicatedotherwise. Various types of general purpose or specialized computersystems may be used with or perform operations in accordance with theteachings described herein.

In view of the wide variety of embodiments to which the principles ofthe present invention can be applied, it should be understood that theillustrated embodiments are exemplary only, and should not be taken aslimiting the scope of the present invention. For example, the steps ofthe flow diagrams may be taken in sequences other than those described,and more or fewer elements may be used in the block diagrams.

While various elements of the preferred embodiments have been describedas being implemented in software, in other embodiments includinghardware or firmware implementations, or combinations thereof, mayalternatively be used, and visa versa.

The claims should not be read as limited to the described order orelements unless stated to that effect. Therefore, all embodiments thatcome within the scope and spirit of the following claims and equivalentsthereto are claimed as the invention.

We claim:
 1. A method for using electronic options for goods or servicesor events, comprising: receiving on a client network device with one ormore processors a plurality of new electronic offers from a servernetwork device with one or more processors via a computer network,wherein the plurality of new electronic offers include electronic optioninformation, wherein the electronic option information includes aplurality of electronic options supplied and governed by one or moredifferent suppliers, wherein the plurality of electronic options are notsupplied or governed via a central government agency and are notsupplied or governed via security laws and wherein the electronic optioninformation further includes a plurality of different electronic optionterms for the plurality of different suppliers, wherein the electronicoption terms for a desired supplier are unique to the desired supplier;displaying on the client network device via an interface one or morebuttons including: (1) an Option It button, for purchasing an electronicoption for a desired good or service or event provided by a specificsupplier, (2) a Buy It button, for buying a desired good or service orevent provided by the specific supplier at an advertised purchasedprice, (3) an Accept button, for accepting electronic option terms for adesired good or service or event provided by the specific supplier, (4)a Decline button, for declining electronic option terms for a desiredgood or service or event provided by the specific supplier, and (5) anExercise button, for exercising an electronic option at a reservationprice purchased for a desired good or service or event provided by thespecific supplier; selecting on the client network device with one ormore of the buttons on the interface one or more of the received newelectronic offers based on desired good or service or event associatedwith the electronic option information, wherein the received pluralityof new electronic offers include a plurality of reservation prices and aplurality of associated option fees for the plurality of electronicoptions, wherein an option fee is not part of a reservation price paidto purchase the desired goods or services or events at a desired futuretime and wherein selected ones of the plurality of electronic optionsinclude electronic options for desired goods or services or events thatdo not currently exist and may never exist and other selected ones ofthe plurality of electronic options include electronic options fordesired goods or services or events that exist; sending from the clientnetwork device via the computer network to the server network device oneor more electronic fees for the purchase of one or more electronicoptions for one or more option fees for one or more desired goods orservices or events for the one or more desired suppliers, wherein thepurchases of the one or more electronic options are accepted on theserver network device according to electronic option terms establishedby the one or more desired suppliers providing the electronic options;and displaying on the interface on the client network device a list ofpurchased electronic options.
 2. A non-transitory computer readablemedium on a client network device with one or more processors havestoring therein a plurality of instructions for causing the one or moreprocessors to execute a method for using electronic options for goods orservices or events, comprising the steps of: receiving on a clientnetwork device with one or more processors a plurality of new electronicoffers from a server network device with one or more processors via acomputer network, wherein the plurality of new electronic offers includeelectronic option information, wherein the electronic option informationincludes a plurality of electronic options supplied and governed by oneor more different suppliers, wherein the plurality of electronic optionsare not supplied or governed via a central government agency and are notsupplied or governed via security laws and wherein the electronic optioninformation further includes a plurality of different electronic optionterms for the plurality of different suppliers, wherein the electronicoption terms for a desired supplier are unique to the desired supplier;displaying on the client network device via an interface one or morebuttons including: (1) an Option It button, for purchasing an electronicoption for a desired good or service or event provided by a specificsupplier, (2) a Buy It button, for buying a desired good or service orevent provided by the specific supplier at an advertised purchasedprice, (3) an Accept button, for accepting electronic option terms for adesired good or service or event provided by the specific supplier, (4)a Decline button, for declining electronic option terms for a desiredgood or service or event provided by the specific supplier, and (5) anExercise button, for exercising an electronic option at a reservationprice purchased for a desired good or service or event provided by thespecific supplier; selecting on the client network device with one ormore of the buttons on the interface one or more of the received newelectronic offers based on desired good or service or event associatedwith the electronic option information, wherein the received pluralityof new electronic offers include a plurality of reservation prices and aplurality of associated option fees for the plurality of electronicoptions, wherein an option fee is not part of a reservation price paidto purchase the desired goods or services or events at a desired futuretime and wherein selected ones of the plurality of electronic optionsinclude electronic options for desired goods or services or events thatdo not currently exist and may never exist and other selected ones ofthe plurality of electronic options include electronic options fordesired goods or services or events that exist; sending from the clientnetwork device via the computer network to the server network device oneor more electronic fees for the purchase of one or more electronicoptions for one or more option fees for one or more desired goods orservices or events for the one or more desired suppliers, wherein thepurchases of the one or more electronic options are accepted on theserver network device according to electronic option terms establishedby the one or more desired suppliers providing the electronic options;and displaying on the interface on the client network device a list ofpurchased electronic options.
 3. The method of claim 1 wherein the oneor more desired suppliers include business-to-business (b2b),business-to-consumer (b2c), consumer-to-business (c2b) orconsumer-to-consumer (c2c) suppliers of goods or services or events. 4.The method of claim 1 further comprising: sending from the clientnetwork device to the server network device a request for a personalizedelectronic coupon associated with a purchased electronic option for adesired good or service or event, wherein the personalized electroniccoupon is governed by the electronic options terms determined by adesired supplier supplying the desired good or service or event;receiving the personalized electronic coupon on the client networkdevice via the computer network from the server network device.
 5. Themethod of claim 4 wherein the step of receiving the personalizedelectronic coupon includes receiving a personalized electronic coupondynamically created on the server network device using one or moreselection inputs accepted from the client network device on the servernetwork device via the computer network.
 6. The method of claim 1wherein the selecting step includes initiating purchase on the servernetwork device via the computer network of an electronic option for oneor more desired goods or services or events with a selection inputreceived from a selection of the Option It button on the interface onthe client network device.
 7. The method of claim 1 wherein theselecting step includes initiating exercising of a purchased electronicoption on the server network device via the computer network for one ormore of the desired goods or services or events with a selection inputreceived from a selection of the Exercise It button on the interface onthe client network device.
 8. The method of claim 1 wherein theselecting step includes initiating direct purchase on the server networkvia the computer network of one or more of the desired goods or servicesor events with a selection input received from a selection of the Buy Itbutton on the interface on the client network device.
 9. The method ofclaim 1 further comprising: receiving on the client network device aplurality of new electronic offers for tickets for a sporting event oran entertainment from the server network device via the computernetwork, wherein the plurality of new electronic offers includeelectronic option information for sporting event tickets orentertainment event tickets, wherein the electronic option informationincludes a plurality of electronic options for sporting event tickets orentertainment event tickets supplied and governed by one or moredifferent suppliers, wherein the plurality of electronic options are notsupplied or governed via a central government agency and are notsupplied or governed via security laws and wherein the electronic optioninformation further includes a plurality of different electronic optionterms for the plurality of different suppliers, wherein the electronicoption terms for a desired supplier are unique to the desired supplier;displaying on the client network device via the interface the one ormore buttons including: (1) the Option It button, for purchasing theelectronic option for the desired good or service or event provided by aspecific supplier, (2) the Buy It button, for buying a desired good orservice or event provided by the specific supplier at the advertisedpurchased price, (3) the Accept button, for accepting electronic optionterms for the desired good or service or event provided by the specificsupplier, (4) the Decline button, for declining electronic option termsfor the desired good or service or event provided by the specificsupplier, and (5) the Exercise button, for exercising the electronicoption at the reservation price purchased for the desired good orservice or event provided by the specific supplier; selecting on theclient network device with one or more of the buttons on the interfaceone or more of the received new electronic offers based on desiredsporting events or entertainment events associated with the electronicoption information, wherein the received plurality of new electronicoffers include a plurality of reservation prices and a plurality ofassociated option fees for the plurality of electronic options, whereinan option fee is not part of a reservation price paid to purchasedesired tickets for sporting events or entertainment events at thedesired future time and wherein selected ones of the plurality ofelectronic options include electronic options for sporting events orentertainment events that do not currently exist and may never exist andother selected ones of the plurality of electronic options includeelectronic options for a sporting event or entertainment event that doexist; sending from the client network device via the computer networkto the server network device one or more electronic fees for thepurchase of one or more electronic options for one or more option feesfor one or more tickets for one or more desired sporting events orentertainments events for the one or more desired suppliers, wherein thepurchases of the one or more electronic options are accepted on theserver network device according to electronic option terms establishedby the one or more desired suppliers providing the electronic options;and displaying on the interface on the client network device a list ofpurchased electronic options.
 11. The method of claim 10 furthercomprising: sending from the client network device to the server networkdevice a request for a personalized electronic coupon associated with apurchased electronic option for one or more tickets for the desiredsporting event or entertainment event, wherein the personalizedelectronic coupon is governed by the electronic options terms determinedby a desired supplier supplying tickets for the desired good or serviceor event; receiving the personalized electronic coupon on the clientnetwork device via the computer network from the server network device.12. The method of claim 11 wherein the step of receiving thepersonalized electronic coupon includes receiving a personalizedelectronic coupon dynamically created on the server network device usingone or more selection inputs accepted from the client network device onthe server network device via the computer network.
 13. The method ofclaim 10 wherein the selecting step includes initiating purchase on theserver network device via the computer network of an electronic optionfor one or more tickets for one or more desired sporting events orentertainment events with a selection input received from a selection ofthe Option It button on the interface on the client network device. 14.The method of claim 10 wherein the selecting step includes initiatingexercising of a purchased electronic option on the server network devicevia the computer network for one or more tickets for one or more desiredsporting events or entertainment events with a selection input receivedfrom a selection of the Exercise It button on the interface on theclient network device.
 15. The method of claim 10 wherein the selectingstep includes initiating direct purchase on the server network via thecomputer network of one or more tickets for one or more desired sportingevents or entertainment events with a selection input received from aselection of the Buy It button on the interface on the client networkdevice.
 16. A system for electronic options for goods or services orevents, comprising in combination: a non-transitory computer readablemedium on a client network device with one or more processors; thenon-transitory computer readable medium including a plurality ofinstructions for the one or more processors on the client networkdevice: for receiving on the client network device a plurality of newelectronic offers from a server network device with one or moreprocessors via a computer network, wherein the plurality of newelectronic offers include electronic option information, wherein theelectronic option information includes a plurality of electronic optionssupplied and governed by one or more different suppliers, wherein theplurality of electronic options are not supplied or governed via acentral government agency and are not supplied or governed via securitylaws and wherein the electronic option information further includes aplurality of different electronic option terms for the plurality ofdifferent suppliers, wherein the electronic option terms for a desiredsupplier are unique to the desired supplier; for displaying on theclient network device via an interface one or more buttons including:(1) an Option It button, for purchasing an electronic option for adesired good or service or event provided by a specific supplier, (2) aBuy It button, for buying a desired good or service or event provided bythe specific supplier at an advertised purchased price, (3) an Acceptbutton, for accepting electronic option terms for a desired good orservice or event provided by the specific supplier, (4) a Declinebutton, for declining electronic option terms for a desired good orservice or event provided by the specific supplier, and (5) an Exercisebutton, for exercising an electronic option at a reservation pricepurchased for a desired good or service or event provided by thespecific supplier; for selecting on the client network device with oneor more of the buttons on the interface one or more of the received newelectronic offers based on desired good or service or event associatedwith the electronic option information, wherein the received pluralityof new electronic offers include a plurality of reservation prices and aplurality of associated option fees for the plurality of electronicoptions, wherein an option fee is not part of a reservation price paidto purchase tickets for the desired goods or services or events at adesired future time and wherein selected ones of the plurality ofelectronic options include electronic options for desired goods orservices or events that do not currently exist and may never exist andother selected ones of the plurality of electronic options includeelectronic options for desired goods or services or events that exist;for sending from the client network device via the computer network tothe server network device one or more electronic fees for the purchaseof one or more electronic options for one or more option fees for one ormore tickets for one or more desired goods or services or events for theone or more desired suppliers, wherein the purchases of the one or moreelectronic options are accepted on the server network device accordingto electronic option terms established by the one or more desiredsuppliers providing the electronic options; for displaying on theinterface on the client network device a list of purchased electronicoptions; for sending from the client network device to the servernetwork device a request for a personalized electronic coupon associatedwith a purchased electronic option for a desired good or service orevent, wherein the personalized electronic coupon is governed by theelectronic options terms determined by a desired supplier supplyingtickets for the desired good or service or event; and for receiving thepersonalized electronic coupon on the client network device via thecomputer network from the server network device.